Honda Posts a Record Quarterly Profit on Sales Rise

The full year earnings of the sales of the Honda grew much in North America, Japan and Asia. The car maker achieved a quarterly profit of 272.4 billion yen, i.e., $3.2 billion. Smaller models which do not deliver hefty profit margins but whose sales held up are focused by the Honda. One of the few Japanese automakers that avoided losses in recession period was Honda Motor Co.

Quarterly revenue jumped 17.9% to $27.5 billion for the fifth quarter of year-on-year growth. The company got a perk from the motorcycle division. The sales got surged 28 % to 2.89 million motorcycles. The auto sales posted growth of 17 percent to 899,000 vehicles. The growth was observed in every region except in Europe.

The profit for April-to-June increased 36 fold from 7.5 billion yen a year earlier when there was financial crisis. For the fiscal year ending March 2011 the company is expecting 455 billion yen, i.e.,$5.2 billion profit. In the last fiscal year the company achieved a profit of 268 billion yen.

It was reported that the cost cut efforts and the production growth helped the company to offset the damage from a strong yen. The growth of sales in North America and Asia was due to the CR-V sporty vehicle. According to a forecast that was made in April, it was reported that the dollar would be an average around 90 yen. However, it has fallen to 87 yen. Because of the surging yen, the company has reduced its revenues forecast for the fiscal year of March 2011 from 9.34 trillion yen ($109 billion) to 9.1 trillion yen ($106 billion). The company sold 3.4 million vehicles last year and expected to sell 3.64 million vehicles for the fiscal year.